Share this story!            

4yrs for light at the end of the tunnel: KESC

By Irfan Aligi

KARACHI: Karachi Electric Supply Company (KESC) CEO S Muhammad Amjad told Daily Times that the power crisis in the city is expected to be over by 2012.

He was present at a seminar organized by ABB (Pvt) Limited on the power situation in Pakistan and the role of ABB as a partner in power generation Monday. He also had to face severe criticism from the other speakers.

While discussing its plans, Amjad said that KESC is going to invest $570 million in a 560-MW power generation plant, in collaboration with a Chinese firm. The agreement is to be signed by next month and the plant is to be operational in three years. Another 220-MW project is on the horizon, an 85-MW plant will be functional in March and another 85-MW plant in a couple of months. The shortage stands at 310 MWs per day, provided that WAPDA continues supplying the utility.

Demand in the city has been increasing by eight percent per annum and if keeps increasing, it will be difficult for KESC to manage. The utility is dependent on WAPDA, but it has reduced supply 25 percent while demand increased 180 MWs last year.

According to its short-term policy, KESC’s 220-MW power plant will be operational soon and four of its gas turbines are ready - the other two by June 2009. However, this summer is not going to be any better, Amjad warned.

Demand by 2012 is estimated to increase to 4,000 MWs and shortage to escalate to 1,200 MWs. KESC is in talks with three companies for a 1,000-MW plant with coal and wind power. This project is to be completed in six years.

If consumers do not cooperate with KESC, then a guarantee to overcome shortages cannot be offered. Air conditioners and fans consume 700 to 800 MW in summers, while ice factories and cold storages cause an additional load. Consumers should keep their air conditioners at 24 degrees Centigrade to save 100 MWs per day - this would overcome one-third of the power crisis.

The utility is going to sell the pure copper from repairs and maintenance. It has also set aside Rs 13 billion for transmission and distribution. According to Amjad, the government is not allowing KESC to use the Gharo-Badin corridor windmills, because the power is to be transferred to WAPDA.

Line losses have been reduced 2.5% percent in six months and KESC is hopeful it will be able to meet a 4% power theft cut-off target in a year.

PEPCO MD Baseer Munawwar Ahmed said that WAPDA cannot sell electricity to anyone. Its area of operation is limited to hydel electricity generation. Elaborating on his video presentation, a perspective on the energy crisis in Pakistan and the way forward, he said that PEPCO’s plans are not castles in the air but in the sand. Pakistan lacks an integrated energy plan for the 21st Century and, in comparison to India, Pakistan uses 6.5% of its coal for energy and India uses 55%.

Pakistan uses 50% gas and India uses seven percent. The use of oil in Pakistan as fuel for energy production stands at 30%, while it is 35% in India. KESC uses gas as its main source of fuel, at 78%, while thermal sources produce 231 MWs.

He said that there will be no power outages by 2010 because an additional 6,000 MWs will be available. The government has approved power projects with a generation capacity of 2,000 MWs in the public sector. Also, 15 new projects with a generation capacity of 2,868 MW have been financially closed. A new 500-MW power project will be ready by the end of this year, while another 300-MW project is undergoing rehabilitation by WAPDA.

An open-cycle power project (300 MWs) is also coming up fast in the private sector, besides a 700-MW power unit. Ahmed said that KESC has no role in the power sector in Pakistan; it has to arrange for its own power generation to meet the growing demand in Karachi.

Ahmed made it clear that there was no agreement between WAPDA and KESC for power purchase. He said that KESC cannot pay its outstanding amount, which runs into the billions of rupees. “If we [PEPCO] are not paid then how can KESC expect to get power from us?” he asked. “KESC itself needs to recover Rs 15 billion from the government, however its arrears with PEPCO are even steeper.”

He said that billboards in the city consume 20 MWs per day, which is sufficient to light 100 villages. “These ugly billboards should be removed,” he said. “Electricity theft is high in DHA, where four air conditioners are used in a house but the bill is not paid.”

KESC’s CEO has been building castles in the air; he made the governor state that 1,000 MWs would be available by 2007, but not a single unit of power has been offered so far, Ahmed said. “Amjad [KESC’s CEO] should get on a faster track, like PEPCO did to overcome the power crisis within a very short period. KESC has shown a lack of good management and planning. Amjad should understand the difference between a consumer and customer. The utility is not doing any ‘ehsaan’ on the people,” said Ahmed.

Home | Karachi

Share this story!